Chinese semiconductor market is expected to rebound in 2010 with the rapid development of electronic components and electronics manufacturing in the country.
According to iSuppli Corp, after a slump in 2009, a vigorous rebound in 2010 is expected for the China’s semiconductor market, as electronic products’ export recovers from global financial downturn, as per the news published by
ECN Asia.
As estimated, the country’s semiconductor market declined by 6.7% and reached $68 Billion in 2009 from the previous year’s $72.9 Billion. This is a considerable decline for the country’s semiconductor market, as in the past years, it has steadily generated strong growth. This decline is far less than the expected 16.5% drop in the global chip industry in 2009. Declining exports are the major factor responsible for this fall.
iSuppli forecast say that in 2010, the China semiconductor market will reach $80.1 Billion, indicating a healthy growth of 17.8%. Thus, along with the global economy, China’s consumer electronic segment will improve in 2010. With a 16.3% rise, the country’s chips and electronic goods exports are expected to reach $17.8 Billion.
Chinese Domestic market started reviving in the first quarter of 2009 due to the government’s economic stimulus package. This revival stimulated a subsequent recovery in the demand for semiconductors, which restricted the decline in 2009, finally paving the path for a double-digit percentage growth in the next year.
The automotive electronics market, which represents the only major application market, will generate a surge in semiconductor demand in 2009. Chip revenue is anticipated to increase from $1.8 Billion in 2008 to $2 Billion this year. China’s domestic sales will drive the growth as the automotive market worldwide is still fighting hard to overcome the after effects of recession.
According to a market research report “
Semiconductor Industry Forecast to 2012” by
RNCOS, it is expected that in the coming few years, a relatively high growth rate will be maintained by the country’s electronic information products market, with around 20% AAGR by 2010, thus further augmenting the country’s growing demand for semiconductors.
According to a Research Analyst at
RNCOS, “The growth of semiconductor consumption market of China remains to be much faster than the global market. The market growth will further be driven by rapid development of electronic components and electronics manufacturing in the country”.
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